Coffee Links 3-12-2012

Monetary Policy works through real estate lending. When real estate isn’t viewed as a good choice, monetary policy doesn’t really work well. Can you imagine the level of business borrowing required to replace the real estate bubble?

These are not futures contracts, first off, because they seem to require full payment if you buy them and get paid immediately if you sell them. I do not think they understand the typical delivery process for futures contracts.I do not understand how the delivery process works for these contracts.

Could I short them in massive quantity the day before settlement? What incentive would people have to buy these contracts months in advance, and make 1% for 6 months. So you get delivered all of the cash if you are short? How does it settle – do you then owe all the money back to the CB at the end based on settlement? Are they just marked to market every night, and what market would that be? If they give out all the money to sellers of CPI, could I just sell a few million contracts, send the money to the Isle of Man and declare bankruptcy?

Oh man did I just read that? The central bank declares bankruptcy?

I designed some CPI contracts for the exchange, and they were way better than this. And it was 50% a joke – something I did on the side to see if it could be done. But then we started talking with the people associated with an extremely famous economist who’s really intrested in making more products tradable, and they were dead serious about launching a product based on the CPI and specifically on the different sectors of CPI as reported by the U.S.government. This is considered to be professional economist level work?

The Newton platform was an early personal digital assistant and the first tablet platform developed by Apple, the second platform being iOS, used in the iPhone, iPod Touch and iPad. Development of the Newton platform started in 1987 and officially ended on February 27, 1998.

This shows the failings of modern economics so clearly. Perhaps Bernanke could wear a crazy hat and a loud sport coat to convey he’s really crazy about getting the economy going. Let’s see…I propose giving a few trillion dollars of money to every working person in the U.S. and their employeers. They propose getting Bernanke to channel Steve Jobs and distort reality.

The recovery will be gradual, if not slow, but will come from a mix of foreign demand, low interest rates, an improvement in the risk environment, structural reforms, and a return of confidence due to the outcomes of the fiscal compact. One look at those answers tells you that there is an ideology at work here which has very little to do with what is actually happening in the real economy of Europe.

Hey Cullen! Senexx wants you to put those MMT videos up! But are they MMT or not? This video is Kelton on MMT. She’s good, but clearly an academic. “maybe if your interested, you might want to…” then finally gets to her talk 2:30 into the video.

Incredible – I never thought I’d see something like this. I might go see this on my own. I’ve been following the ecat for a long time, and the outrageous claims of free energy scammers for a long time. It was a hobby for me back in the 1990s

One reason people hold dollars or Treasuries is that they have a contract to buy oil in dollars at a future date. So trading oil in dollars increases the demand for dollars. If people stop trading oil in dollars the demand for dollars will go down. If the demand for dollars goes down the value will go down. Why is this “Swweeeet”?